5 more Workforce Central Florida board members quit

September 23, 2011|By Jim Stratton, Orlando Sentinel

Five more board members of Workforce Central Florida turned in their resignations Friday — including Chairman Lawrence Haber — two days after Gov. Rick Scott threatened to cut off funding unless the agency's leadership was replaced.

Four of the five stepped down immediately, while Haber's resignation becomes effective late next week. Seven others left the agency Thursday.

The resignations have been applauded by Orange County Mayor Teresa Jacobs, who issued a statement late Thursday after the first round of departures from the labor agency accused of mishandling millions of federal dollars.

"I'm encouraged by the actions taken by board members so far," Jacobs said. "I think we're moving in the right direction, and I want to thank Governor Scott for his leadership in this matter."

Jacobs is one of five elected officials who sits on the Workforce Investment Consortium. The group — consisting of Jacobs and county-commission chairmen from Osceola, Seminole, Lake and Sumter — is the legal entity through which federal funding passes on its way to Workforce Central Florida.

The consortium also appoints Workforce board members but historically has played little role in its operation.

Jacobs and her colleagues are scheduled to meet Thursday to choose an interim executive director for the agency. Jacobs said with unemployment in double digits, the jobs agency "can't afford to miss a beat."

In addition to the 12 board members, three top staffers have stepped down, including longtime President and CEO Gary Earl. Earl, who made about $180,000 last year, will receive about $9,300 in unused personal time.

The other four board members who stepped down Friday are: Kelly Rice of Century 21, Prime Property Resources Inc.; John Cooper of the Department of Children and Families; Dyke Shannon of D&D Enterprises of Sanford, Inc.; and Lisa Somerville of Restor Telecom Inc.

Workforce leaders have insisted reports of financial mismanagement have been blown out of proportion.

Haber, whose resignation becomes effective after the consortium meeting, says board members and staff have done nothing wrong, with the exception of approving an ill-fated public-relations campaign that proposed spending thousands on small, red superhero capes for the unemployed.

Other issues cited by Scott, Haber said, amount to misunderstandings about how money was used and accounted for. In several instances, Haber said, expenses questioned by auditors actually saved the agency money.

But board member Larry Kidd challenged that notion Friday, saying many agency leaders refused to acknowledge when they had made mistakes.

Kidd, the only board member to publicly criticize the agency, called for Earl's dismissal in June but received no support. He described an organization that was run by a small group of executives and a handful of board members.

Those leaders, he said, were primarily interested in Workforce's public image and its relationship with the business community. Out-of-work Central Floridians, he claimed, were often an afterthought.

"They lost track of their mission," said Kidd, organized labor's representative to the board. "I want them to get back to Job One."

Kidd also said he was dismayed by how Workforce spent its grant money, saying that "in my opinion, some of it could amount to criminal wrongdoing." Kidd, however, conceded he could not name a specific instance.

In the past five months, a series of Orlando Sentinel stories has revealed how the agency gave contracts to board members, used job-grant money to pay legal settlements and spent thousands on the short-lived "Cape-A-Bility Challenge" campaign. A state inspector general report criticized Workforce for building a fleet of more than 30 vehicles.

In August, the U.S. Labor Department told the agency its review of contracts awarded to board members was focused on possible "criminal conflicts of interest." State officials have prohibited it and other labor force boards from doing any more business with board members.

Workforce serves a five-county area, helping the unemployed find work and helping businesses find qualified workers. Its only significant source of revenue is federal tax money it receives each year. During the past five years, the agency has collected more than $100 million in federal funding.